Florida & Gulf Coast + South Florida + Finance | September 12, 2022

Driftwood Capital has provided $44.5-million financing to an institutional owner for the acquisition of 26 economy hotels in FL and GA.

Driftwood Capital Originates $44M Mezzanine Loan for Economy Hotel Portfolio

Coral Gables, FL-based Driftwood Capital has provided $44.5-million financing to an institutional owner of hospitality assets for acquisition of 26 economy, extended-stay hotels located predominantly in FL and GA, along with the refinancing of an additional 15 hotels.

Driftwood originated a three-year, $44.5 million mezzanine loan,with two one-year extension options. The mezzanine loan sits behind a $226-million senior facility, originated by Starwood Property Trust.

The loan covers the sponsor’s acquisition of eight Motel 6 and four Studio 6 properties built between 1969 and 2008 in Orlando, Fort Lauderdale, Cocoa Beach, Dania Beach, Destin, Cutler Bay, Jacksonville, and West Palm Beach. The sponsor also acquired 14 economy-extended stay hotels located in the Florida Panhandle and in GA, eight of which are operating as Studio 6 properties. The 15 additional properties held as collateral are in FL, MA, NC, SC and VA.

Driftwood is developing the $388-million Westin Cocoa Beach and the $200 million Riverside Wharf/Dream Hotel in Downtown Miami.

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About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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